Startup Professionals Musings

JUNE 9, 2012

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Unless your volumes are in the millions or higher, the difference between manufacturing cost and customer price better be 50% or greater.

Forecast 238

Forecast Burn Rate .Net Business Model 238

Both Sides of the Table

NOVEMBER 3, 2009

In all of these new product and cost-focused new trends, a big problem has emerged that all of these movements have not addressed. Let’s start with how much value you think you’ll create for your customer if they use your product in terms of hours saved, costs avoided, extra sales, better conversion rates or whatever.

Business Plan 334

Business Plan AJAX Venture Capital Technical Review 334

Startup Professionals Musings

MARCH 22, 2011

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Unless your volumes are in the millions or higher, the difference between manufacturing cost and customer price better be 50% or greater.

Forecast 230

Forecast Burn Rate Startup .Net 230

The Startup Magazine

MAY 9, 2024

This strategic pivot is designed to address the issue of startups unsustainably broadening their customer base and product lines, which results in inefficiencies and escalates customer acquisition costs. Their net revenue retention (NRR) soared to 150%, a testament to their product’s value to existing customers.

Burn Rate 88

Burn Rate Bankruptcy Startup Metrics 88

Up and Running

OCTOBER 7, 2019

A data-driven approach can help you make accurate and timely business decisions to meet market demands and improve cost-efficiency. Activation rate: measures how many visitors are engaging with your website or app. “What gets measured gets done.” . However, as a founder of a small business or startup, you’re juggling many things.

Founder 71

Founder Retention Metrics Technical Review 71

Berkonomics

AUGUST 10, 2017

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

David Teten

NOVEMBER 26, 2019

Inevitably, things cost more and take longer than expected. Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate. I encourage entrepreneurs to correct course with a re-forecast early and often.

Agile 60

Agile Management Forecast Silicon Valley 60

Startup Professionals Musings

MARCH 25, 2010

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Unless your volumes are in the millions or higher, the difference between manufacturing cost and customer price better be 50% or greater.

Forecast 151

Forecast Startup Burn Rate .Net 151

crowdSPRING Blog

DECEMBER 12, 2014

It’s Absurd That Health Care Costs Are So Confusing – crowdspring.co/1yDomRJ. Don’t Get Burned by Your Burn Rate – crowdspring.co/159KKrk. A Refresher on Net Present Value – crowdspring.co/11LJvw6. Online Sales for Girl Scout Cookies Are Approved – crowdspring.co/1pIc88R. 1v6Fr0z.

Social Media 100

Social Media Small Business Design Media 100

Berkonomics

MARCH 30, 2010

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn.

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

Up and Running

APRIL 2, 2020

Your sales have plunged, or worse, your business is now closed during the shutdown. Specifically, if you have an ongoing sales forecast , and expense budgets linked to that forecast, then you have instant visibility for making quick adjustments to sudden change. . What your sales numbers look like in a crisis.

Forecast 157

Forecast Salary Business Plan Balance Sheet 157

Both Sides of the Table

JUNE 17, 2017

The most obvious way to explain this is with sales people. If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. They don’t want high burn rates but they will never fund slow growth.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Steve Blank

FEBRUARY 22, 2010

An early indication that you’ve found the right business model is when you believe the cost of getting customers will be less than the revenues the customers will generate. For web startups, this is when the cost of customer acquisition is less than the lifetime value of that customer. Cost Per Acquisition Paid. Web Metrics.

Balance Sheet 304

Balance Sheet Startup Burn Rate Metrics 304

Startup Professionals Musings

AUGUST 14, 2015

Common financial metrics include burn rate, gross margin, revenue growth and net profit. You also need a sales pipeline, customer acquisition costs and marketing costs as a percent of revenue. Define metrics to keep on track for the journey. Continually motivate and reward your team.

Elevator Pitch 120

Elevator Pitch Burn Rate Startup Metrics 120

Up and Running

AUGUST 21, 2014

It’s hard to understand how many people will you actually attract, what is it going to cost, what’s your conversion rate, how long will people stay. You’re going to want to really think about how you’re going to drive traffic and what’s most cost effective. There’s tools to do all of that.

Metrics 84

Metrics Startup Churn Rate Forecast 84

Austin Startup

NOVEMBER 11, 2017

We knew we would solve the problem faster by having access to the Techstars network and accelerator program (5000+ founders, mentors and investors worldwide) Learn how to scale our business and automate sales and csm by exporting our SaaS in a foreign and huge market: the US. We reduced by 63,6% by reducing our costs (HR, Tools, G&A.)

Burn Rate 54

Burn Rate Product Cofounder PR 54

www.paulgraham.com

APRIL 28, 2010

For example, VCs generally write it into the deal thatin any sale, they get their investment back first. Some VCsnow require that in any sale they get 4x their investment backbefore the common stock holders (that is, you) get anything, butthis is an abuse that should be resisted. Onefounder I know wrote: Two-firm deals are great.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. Layoffs have also become more prevalent.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40